Sheridan Company purchased land and a building on April 1, 2019, for $384,000. The company paid $117,600 in cash and signed a 5% note payable for the balance. At that time, it was estimated that the land was worth $152,000 and the building, $232,000. The building was estimated to have a 25-year useful life with a $38,500 residual value. The company has a December 31 year end, prepares adjusting entries annually, and uses the straight-line method for buildings; depreciation is calculated to the nearest month. The following are related transactions and adjustments during the next three years.

Q3.1: Which of the following statements is TRUE about accounting time periods? A Adjustments to the company's accounts can only be made in the time period when the business terminates its operations. B A transaction can only affect one period of time. CThe economic life of a business can be divided into artificial time periods. D Estimates should not be made if a transaction affects more than one time period. Q3.3: According to the revenue recognition criteria, when should revenue be recognized in the accounting period? A in the period in which the performance obligation is satisfied in the period in which income taxes are paid C in the period in which cash is received D at the end of the month